A compliance audit is an independent inspection that is carried out in an organization to verify if it is operations are in line with both external rules and internal guidelines. It can also be carried out to determine if the company is working according to a signed agreement. For example, a government agency may carry out a compliance audit on a firm to determine if it's conforming to the rules of funding that it received.
A financial audit examines the financial statements, business processes, and other related documentation of an organization. This type of audit is often conducted by an independent person (an individual not working in your organization). The independent auditor usually tries to understand your financial position by probing your books of accounts, internal control policies, and if you are following the industry-accepted standards of accounting.
An operational audit strives to improve operations and productivity within the organization. It involves the inspection of all the vital processes, systems, operational procedures, and the internal control of the firm. An operational audit also aims to reduce wastage of resources by targeting important control processes that might need improvement. This type of audit is an internal affair that requires top-notch discipline. If done correctly, it will add value to the company.
Information Systems Audit
An information system audit analyzes the effectiveness and efficiency of information systems. This type of audit is carried out to answer questions such as is the information system protecting the integrity, availability, and confidentiality of the company's data? Information system audit also ensures that the operations of the company proceed smoothly and efficiently. That data and information excellently support the corporate objectives of the firm.